Panel calls for economic revival policy

Concerned over the current “gloom and doom” scenario, the Standing Committee on Finance on Thursday asked the government to come out with a “well thought-out revival policy” for growth and to speed up enactment of financial reforms Bills.

The Parliamentary panel, headed by BJP MP Yashwant Sinha, in its report tabled in Parliament, said it looked forward to clarity and consistency in policies and regulations so that investors, especially foreign, do not shy away from investing in the country.

The committee’s call for speeding up enactment of pending financial reforms bills include those relating to pension fund, insurance, banking and Direct Taxes Code and the companies law. The committee has already given its reports on these Bills.

The report on ‘Current Economic Situation and Policy Options’ said the need of the hour was to put the economy on the growth track through a “well thought out revival policy” of more effective decision-making, time-bound clearance of projects, transparent tax regime and enhanced domestic investment.

Noting that investor confidence has been hit by retrospective amendment to tax laws and the new General Anti-Avoidance Rules (GAAR), the committee said the government needed to create conducive climate to promote investments.

“To bring back the country on the growth track, investments need to be pepped up and for investments to pick up a conducive investment climate needs to be created. Hence, the committee recommends speeding up of policy reforms...,” the report said.